Canadian labour shortage will last 10 years for complex reasons.
Hardest hit are Canada’s small and mid-sized companies.
And these companies must find ways to adapt to the new reality.
That is the opinion of chief economist Pierre Cleroux of the Business Development Bank of Canada.
“They represent about 50 per cent of the Canadian economy. So they are very important.
“Also, they are very important in smaller communities.”
He made the comments in an interview with the Huffington Post.
The bank did a survey of 1,280 people from small and medium-sized businesses.
The survey found 39 per cent found it difficult to hire the help they required.
A report by the Canadian Federation of Independent Business (CFIB) echoes the bank’s findings.
Job vacancies rose again in the second quarter of this year to 3.1 per cent.
This was the highest vacancy rate since the CIFB began tracking job vacancies in 2004.
The report estimates 397,400 have sat vacant for at least four months.
Canadian Labour Shortage Will Last 10 Years
And the notion that these jobs get unfilled because of the strong economy is wrong.
So what is the real reason?
The supply of younger workers cannot keep up with all the people who are retiring.
“A lot of people think this is only temporary,” Cleroux says. “Unfortunately this is not the case and it’s important to understand that, because they have to change the way they manage their human resources.”
But aside from that issue there is another elephant in the room.
And that is – Canadian businesses are a lot to blame for the situation.
And here is another paradox.
Despite the record vacancies it is getting harder to land a job.
Another major reason is the refusal to hire older workers.
There are plenty of skilled older workers available.
But companies don’t want to hire them.
So unless attitudes change and business adapts to the new realities nothing will change.